NAICS Sector 52

Sector 52

NAICS Sector 52: Finance and Insurance

Definition of NAICS Sector 52: The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified:

  1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation.
  2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.
  3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.

In addition, monetary authorities charged with monetary control are included in this sector.

NAICS 52The subsectors, industry groups, and industries within the NAICS Finance and Insurance sector are defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing characteristics of the production process. For instance, the production process in raising funds through deposit-taking is different from the process of raising funds in bond or money markets. The process of making loans to individuals also requires different production processes than does the creation of investment pools or the underwriting of securities.

Most of the Finance and Insurance subsectors contain one or more industry groups of:

  1. iIntermediaries with similar patterns of raising and using funds and
  2. Establishments engaged in activities that facilitate, or are otherwise related to, that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which a production process can be specified, and many of these activities are not exclusive to a particular type of financial institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split these institutions into components performing specialized services. This requires defining the units engaged in providing those services and developing procedures that allow for their delineation. These units are the equivalents for finance and insurance of the establishments defined for other industries.

The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise. Additionally, a number of independent activities that represent separate and distinct production processes may take place at a single location belonging to a multilocation financial firm. Activities are more likely to be homogeneous with respect to production characteristics than are locations, at least in financial services. The classification defines activities broadly enough that it can be used both by those classifying by location and by those employing a more top-down approach to the delineation of the establishment.

Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation have been included in individual subsectors, rather than in a separate subsector dedicated to services alone because these services are performed by intermediaries, as well as by specialist establishments, the extent to which the activity of the intermediaries can be separately identified is not clear.

The Finance and Insurance sector has been defined to encompass establishments primarily engaged in financial transactions; that is, transactions involving the creation, liquidation, change in ownership of financial assets; or in facilitating financial transactions. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds to and from transactors’ accounts, notifying banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction processing activities are integral to the production of finance and insurance services, establishments that principally provide a financial transaction processing service are classified to this sector, rather than to the data processing industry in the Information sector.

Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety of purposes. Thus for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities.

Two Digit Sector 52 Breakdown for the North American Industry Classification System

NAICS codes are broken down by digit. The broadest description starts with the 2 digit sector codes. The 3 digit subsector codes are more specific, then the 4 digit industry group, 5 digit industry, and the most specific is the 6 digit NAICS code. If NAICS Sector 52 does not describe the industry of the business in question, then select the largest applicable code below. From there, follow the progression of smaller digits to the larger digits in order to obtain the most specific 6 digit classification.

  • Sector 52: Finance and Insurance
    • Subsector 521: Monetary Authorities-Central Bank
      • Industry Group 5211: Monetary Authorities-Central Bank
        • Industry 52111: Monetary Authorities-Central Bank
          • 6 Digit Code(s) NAICS 521110: Monetary Authorities-Central Bank
    • Subsector 522: Credit Intermediation and Related Activities
      • Industry Group 5221: Depository Credit Intermediation
        • Industry 52211: Commercial Banking
          • 6 Digit Code(s) NAICS 522110: Commercial Banking
        • Industry 52212: Savings Institutions
          • 6 Digit Code(s) NAICS 522120: Savings Institutions
        • Industry 52213: Credit Unions
          • 6 Digit Code(s) NAICS 522130: Credit Unions
        • Industry 52219: Other Depository Credit Intermediation
          • 6 Digit Code(s) NAICS 522190: Other Depository Credit Intermediation
      • Industry Group 5222: Nondepository Credit Intermediation
        • Industry 52221: Credit Card Issuing
          • 6 Digit Code(s) NAICS 522210: Credit Card Issuing
        • Industry 52222: Sales Financing
          • 6 Digit Code(s) NAICS 522220: Sales Financing
        • Industry 52229: Other Nondepository Credit Intermediation
          • 6 Digit Code(s) NAICS 522291: Consumer Lending
          • 6 Digit Code(s) NAICS 522292: Real Estate Credit
          • 6 Digit Code(s) NAICS 522293: International Trade Financing
          • 6 Digit Code(s) NAICS 522294: Secondary Market Financing
          • 6 Digit Code(s) NAICS 522298: All Other Nondepository Credit Intermediation
      • Industry Group 5223: Activities Related to Credit Intermediation
        • Industry 52231: Mortgage and Nonmortgage Loan Brokers
          • 6 Digit Code(s) NAICS 522310: Mortgage and Nonmortgage Loan Brokers
        • Industry 52232: Financial Transactions Processing, Reserve, and Clearinghouse Activities
          • 6 Digit Code(s) NAICS 522320: Financial Transactions Processing, Reserve, and Clearinghouse Activities
        • Industry 52239: Other Activities Related to Credit Intermediation
          • 6 Digit Code(s) NAICS 522390: Other Activities Related to Credit Intermediation
    • Subsector 523: Securities, Commodity Contracts, and Other Financial Investments and Related Activities
      • Industry Group 5231: Securities and Commodity Contracts Intermediation and Brokerage
        • Industry 52311: Investment Banking and Securities Dealing
          • 6 Digit Code(s) NAICS 523110: Investment Banking and Securities Dealing
        • Industry 52312: Securities Brokerage
          • 6 Digit Code(s) NAICS 523120: Securities Brokerage
        • Industry 52313: Commodity Contracts Dealing
          • 6 Digit Code(s) NAICS 523130: Commodity Contracts Dealing
        • Industry 52314: Commodity Contracts Brokerage
          • 6 Digit Code(s) NAICS 523140: Commodity Contracts Brokerage
      • Industry Group 5232: Securities and Commodity Exchanges
        • Industry 52321: Securities and Commodity Exchanges
          • 6 Digit Code(s) NAICS 523210: Securities and Commodity Exchanges
      • Industry Group 5239: Other Financial Investment Activities
        • Industry 52391: Miscellaneous Intermediation
          • 6 Digit Code(s) NAICS 523910: Miscellaneous Intermediation
        • Industry 52392: Portfolio Management
          • 6 Digit Code(s) NAICS 523920: Portfolio Management
        • Industry 52393: Investment Advice
          • 6 Digit Code(s) NAICS 523930: Investment Advice
          • 6 Digit Code(s) NAICS 523991: Trust, Fiduciary, and Custody Activities
          • 6 Digit Code(s) NAICS 523999: Miscellaneous Financial Investment Activities
    • Subsector 524: Insurance Carriers and Related Activities
      • Industry Group 5241: Insurance Carriers
        • Industry 52411: Direct Life, Health, and Medical Insurance Carriers
          • 6 Digit Code(s) NAICS 524113: Direct Life Insurance Carriers
          • 6 Digit Code(s) NAICS 524114: Direct Health and Medical Insurance Carriers
        • Industry 52412: Direct Insurance (except Life, Health, and Medical) Carriers
          • 6 Digit Code(s) NAICS 524126: Direct Property and Casualty Insurance Carriers
          • 6 Digit Code(s) NAICS 524127: Direct Title Insurance Carriers
          • 6 Digit Code(s) NAICS 524128: Other Direct Insurance (except Life, Health, and Medical) Carriers
        • Industry 52413: Reinsurance Carriers
          • 6 Digit Code(s) NAICS 524130: Reinsurance Carriers
      • Industry Group 5242: Agencies, Brokerages, and Other Insurance Related Activities
        • Industry 52421: Insurance Agencies and Brokerages
          • 6 Digit Code(s) NAICS 524210: Insurance Agencies and Brokerages
        • Industry 52429: Other Insurance Related Activities
          • 6 Digit Code(s) NAICS 524291: Claims Adjusting
          • 6 Digit Code(s) NAICS 524292: Third Party Administration of Insurance and Pension Funds
          • 6 Digit Code(s) NAICS 524298: All Other Insurance Related Activities
    • Subsector 525: Funds, Trusts, and Other Financial Vehicles
      • Industry Group 5251: Insurance and Employee Benefit Funds
        • Industry 52511: Pension Funds
          • 6 Digit Code(s) NAICS 525110: Pension Funds
        • Industry 52512: Health and Welfare Funds
          • 6 Digit Code(s) NAICS 525120: Health and Welfare Funds
        • Industry 52519: Other Insurance Funds
          • 6 Digit Code(s) NAICS 525190: Other Insurance Funds
      • Industry Group 5259: Other Investment Pools and Funds
        • Industry 52591: Open-End Investment Funds
          • 6 Digit Code(s) NAICS 525910: Open-End Investment Funds
        • Industry 52592: Trusts, Estates, and Agency Accounts
          • 6 Digit Code(s) NAICS 525920: Trusts, Estates, and Agency Accounts
        • Industry 52599: Other Financial Vehicles
          • 6 Digit Code(s) NAICS 525990: Other Financial Vehicles

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NAICS Sector 52